1. Technical Field
Disclosed embodiments relate generally, by way of example and not limitation, to systems and methods that permit a risk of money-laundering activity to be assessed.
2. History of Related Art
Money laundering, the metaphorical “cleaning of money” with regard to appearances in law, is the practice of engaging in specific financial transactions in order to conceal the identity, source, or destination of money. The term “money laundering” has traditionally been applied only to financial transactions related to organized crime. However, in recent years, the definition of money laundering has been expanded by government regulators (e.g., United States Office of the Comptroller of the Currency) to encompass any financial transaction that generates an asset or a value as the result of an illegal act. Thus, money laundering is now recognized as potentially practiced by individuals, small and large business, corrupt officials, members of organized crime (e.g., drug dealers or the Mafia) or of cults, and even corrupt states or intelligence agencies.
Anti-money laundering (AML) is a term mainly used in the finance and legal industries to describe legal controls that require financial institutions and other regulated entities to prevent or report money laundering activities. For example, financial institutions must perform due diligence by having proof of a customer's identity and that the use, source, and destination of funds do not involve money laundering.
In part due to stringent requirements of the U.S. Patriot Act, which was enacted after the Sep. 11, 2001 terrorist attacks in an effort to choke the supply of terror funds, anti-money-laundering efforts have achieved an unprecedented importance on the agendas of U.S. financial institutions. In light of the heightened importance to financial institutions of impeding money laundering, it would be advantageous to allow financial institutions to more effectively focus resources on those customers that present a higher risk for money laundering.